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An open letter to Ed Whitacre -- Redux
With the SBC-AT&T merger complete and the renewed buzz from the FCC about ala carte cable, thought it would be a good time to revise and renew my plea to Ed Whitacre. Original letter was posted in July.
-----begin letter--------
Dear Mr. Whitacre:
Dare to be great. As hungry media consumers, this is what we ask of you today.
No doubt you've already achieved a level of business success which can not be denied. You have proven your kung fu is strong. But now we humbly ask you to use your immense power to slay a beast that will be perhaps your toughest to conquer. The cable monopoly.
You and your proud at&t are spreading the word about your new venture into delivering video programming -- codename Project Lightspeed, aka U-verse.
This is good news and you are to be commended for having the guts and vision to make this kind of investment. Some would argue that the cable and satellite companies are getting a little too comfortable. Your entry into the market should motivate them to compete as never before and we the media consuming people should benefit with a strong new competitor in the mix.
But, Mr. Whitacre, do you dream too small? at&t claims your new IPTV technology to be revolutionary. That may be true about the technology. But we fear that your application of the technology will be timid and incremental, at best. You have within your grasp the power to unleash a total transformation in the delivery of video programming. Will you seize it?
Under our understanding of the current at&t "revolution", the cable TV consumer will still be forced to buy a package of channels, the majority of which we seldom watch or want. The "revolution" you describe is in how those channels are delivered, along with some new features like the ability to select camera angles during sporting events and watch multiple pictures in picture.
Being geeks, we are excited about those features. But are they really revolutionary? Does the average TV consumer really care whether they are watching The World Series of Poker via Internet Protocol or some other acronym? As long as the picture is there and looks good, does it matter to the subscriber how you deliver it?.
And when the cable companies soon offer the same features, what will be revolutionary about that?
Again, at&t, we urge you to be great! Throw your allegiance to the consumer and spark a real revolution. Give the consumer what they want, when they want it. The revolution of ala carte cable TV.
Why ala carte? If our Grandmothers would like to only subscribe to The Weather Channel, Turner Classic Movies, Oxygen and WE, why should she be forced to subscribe to ESPN, CSPAN and CNBC? And vice versa. If Dow Jones forced you Mr. Whitacre to subscribe to Family Circle in order to get The Wall Street Journal, would that make sense to you?
The cable companies will quickly chime in to tell us how packaged programming is better and actually cheaper for us. Does anybody really believe that, including them? They will offer the argument that giving the consumer this kind of freedom of choice will be more expensive and actually reduce our programming choices. They will present to us experts to explain how they are really watching out for our best interest by forcing us to subscribe to channels that we don't want. They will say to us, “Buffets are bad for the industry. Buffets are bad for the consumer”.
Hmmm. Is Luby's bad for the dining industry? Just because I'm not brave enough to order the trout almandine when I dine there, they still seem to carry it. And if enough people don't want a dish, then shouldn't it be removed from the menu. That is the harsh reality of capitalism that non-monopoly businesses must deal with everyday. It is time that you joined the club.
Ultimately, if we consumers see our cable bill shrink from $70 a month, to $35 a month, the buffet may start to taste pretty good.
Some local governments choose to side with the entrenched powers to tell us this kind of freedom of choice is a bad thing, as they do when they help stop local power companies from competing in the broadband game.
Where you will throw your allegiance, Mr. Whitacre? Do you join the entrenched powers, or do you fulfill your promise to spark a real revolution?
This change is coming and the choice is yours. It will happen. We just need a leader in a powerful position to storm the beaches and take those incoming rounds that will no doubt come from those trying to hold on to their power. Are you that leader Mr. Whitacre? Is at&t that brave army of true revolutionaries ready to unleash the kind of creative destruction that was unleashed on your own company's old landline business. You no doubt continue to feel the power the axis of acronyms -- VOIP, CDMA, GSM and 3G - inflict everyday on your brave veteran soldier, SGT. POTS.
The upside to your many battles is that you have been behind enemy lines. You understand the mentality of the monopoly. Why not now use those lessons and bring about the kind of change that will truly revolutionize the business of content distribution?
When you enter the market and frame your message on the new choices that ala carte offers, that will be a truly revolutionary choice for the consumer.
Get only the programming we want, when we want it. Sweet.
The consumer will get the message that something new really is out there. We will seek you out with the hope of breaking out of the chains of the current cable and satellite programming packages. If you remain skeptical of this scenario, once again you only need to take a look at the heavy casualties in your POTS subscriptions for a refresher course in the unstoppable power of disruptive technology.
We know that the phone company is not the Evil Empire that you are all too often characterized to be. The people of at&t are good people and your company is a real asset to San Antonio.
Still, sometimes even good people who spend too much time breathing the distorted air that fills the halls of monopolies and bureaucracies lose focus on who they are here to serve.
You are here to do something great with the power you have been blessed with. Truly revolutionizing the industry and creating the most long term value for your shareholders go hand in hand.
Go for it. We will support you.
Respectfully yours,
We The Media Consuming People
Tags: ala carte cable;at&t;
Posted by davidc | November 30, 2005 09:07 AM | Permalink | Email This
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